I haven’t had the time to consider this in much detail, but have been playing with the concept of Nu issuing Nubits backed by individual private crypto reserves.
For example, someone wants to borrow 100k Nubits, they need to provide collateral of, for example, 200k Nubits worth of BTC, which is held in a private escrow, the 100k NBT is released to them and they need to pay monthly payments with interest to Nu for the service. Once the loan is repaid in full (with interest), the BTC is returned to the borrower.
If the borrower defaults, Nu can sell the collateral to re-buy Nubits to pay off loan, with any profits less fees being returned to the defaulting borrower.
Basically, a model similar to traditional banking.
Nu would make money from interest, e.g. 5% on all issued Nubits, plus any arrangement fees.
Demand for NBT would be assured, as all borrowers need to buy NBT every month to pay their re-payments, and total re-payments will exceed loan amount for each loan.
The reason I’m posting this now is that SALT is planning to do this with the crypto reserve, but issuing Fiat instead of Nubits:
Would something like SALT be a good option for Nubits?
Is this idea in essence similar to BTS and BITUSD, but actually marketed as a lending product?
I feel this model could generate significant revenue & demand for Nu, but wouldn’t be tied to banks like SALT is.
No idea how it’d be achieved technically however!